AUTOBACS Announces Merger among Consolidated Subsidiaries
OREANDA-NEWS. February 24, 2012. AUTOBACS SEVEN Co., Ltd. (“AUTOBACS SEVEN,” Representative Director and CEO: Setsuo Wakuda) decided the merger of its two wholly-owned subsidiaries, AUTOBACS Miyagi Ltd.(“AB Miyagi”) and ADR Ltd.(“ADR”).
1. Purpose of merger
As described in the AUTOBACS 2010 Medium-Term Business Plan, AUTOBACS Group is aiming to increase market share and improve store profitability by strengthening its franchise chain business in Japan. As part of the effort, AUTOBACS SEVEN decided to consolidate store ownership in the Tohoku area, to simplify the operational structure and increase area competitiveness and management efficiency.
2. Outline of merger
(1) Schedule for the merger
Date of the Board’s resolution at both subsidiaries: February 24, 2012
Effective date of merger: April 1, 2012 (planned)
(2) Merger method
Under a merger by absorption method, AB Miyagi will be the surviving entity and ADR will be absorbed.
(3) Share allocation in merger
Since both of the merging companies are wholly owned subsidiaries of AUTOBACS SEVEN, there is no arrangement for merger ratio.